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The In-Vehicle Apps Market will Reach $1.2 Billion

The two main silos in the telematics industry -- consumer automotive and commercial telematics -- remain the most active areas within the broader M2M (machine to machine) industry.

New applications for telematics reach the market on an almost daily basis through apps, and industry research into areas such as V2x (where vehicles communicate with one another and road infrastructure on-route in real time) is beginning to give a picture of the role that the telematics industry will play in the future automotive market.

The Smart Vehicle will become the new frontier for app developers over the next five years, according to the latest market study by Juniper Research, which now forecasts that the market for in-vehicle apps will be worth just short of $1.2 billion by 2017.

Advancements in automotive connectivity standards such as MirrorLink and ever higher smartphone ownership will create foundations allowing the connected car ecosystem to flourish -- particularly in developed North American and Western Europe markets.

Their new report, Connected Cars: Automotive Telematics & In-Vehicle Infotainment 2013-2017, found that there will be a downward pressure on the price of vehicle manufacturers’ own embedded telematics infotainment services -- as the in-vehicle software app ecosystem matures.

"The biggest winner from the rapid roll-out of smartphone tethering and in-vehicle Apps will be the consumer," says Anthony Cox, analyst at Juniper Research.

Smartphone tethering will enable the creation of a wealth of apps for the vehicle -- just as it did for the smartphone.

The market for embedded telematics systems in both the commercial and consumer areas will also see robust growth as consolidation among regional commercial telematics players begins to give an indication of which players will become a global force in telematics.

Further insights from the market study include:
  • Big Data derived from telematics service provision is likely to emerge as an unexpected revenue driver for telematics companies and automotive manufacturers.
  • The wide-spread deployment of V2V (vehicle to vehicle) and vehicle to infrastructure (V2I) technologies remains a long way off, though trials of are on-going in some markets.
  • Insurance telematics is reaching the point of wide-scale deployment particularly in certain markets such as the U.S., Italy and the UK.

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